Direct PLUS Loan
The Direct PLUS Loan is a credit-based federal loan program for the parents of dependent undergraduate students. Credit-worthy parents can borrow the cost of education not covered by other aid through the Federal Direct PLUS Loan program. The interest rate is fixed at 7.9%. If the parent of a dependent undergraduate student does not qualify for the PLUS Loan, the student would be eligible to borrow additional Direct Unsubsidized Loan. First and Second years students can borrow up to an additional $4,000 Direct Unsubsidized Loan, and Third and Fourth year student can borrow up to an additional $5,000 Direct Unsubsidized Loan per academic year. Dependent students whose parent is denied the PLUS have Direct Loan borrowing limits identical to those of Independent students. Parents must re-apply and be credit approved each year to borrow through the PLUS Loan program.
The Perkins Loan is a federally-funded loan program for students with high financial need. The Perkins Loan has a fixed interest rate of 5%. Repayment of principal and interest begins nine months after the student ceases to be enrolled on at least a half-time basis and generally extends over a 10 year period. Funding is limited, and students will be notified of Perkins Loan eligibility on their financial aid award letter. A Perkins Loan Master Promissory Note (MPN) and Perkins Loan Entrance Counseling are required to borrow the Perkins Loans.
Private Student Loans
After exhausting the opportunities available from the federal aid programs, students may consider private or alternative loan programs as a source of funding. The terms and conditions of these credit-based loan programs vary, and as such, students are encouraged to review the details of the programs before selecting an alternative loan program. Private loans are not eligible for loan consolidation programs made available for federal student loans. Interest rates, fees (both at the time of borrowing and at repayment), credit checks, and annual and aggregate loan limits require careful evaluation by the student as a consumer and are generally less advantageous than those of federal loans. Taking on debt for any reason should be done deliberately and only for the amounts needed. Additional information about the difference between federal and private student loan programs is available from the U.S. Department of Education publication Federal Aid First.
Beginning in the fall of 2010, Rosemont College will be participating in the Pennsylvania Private Loan Marketplace. The Pennsylvania Private Loan Marketplace is an online education financing resource that enables consumers to learn about and compare private loan terms from multiple lenders. To begin the private loan process, visit Pennsylvania Private Loan Marketplace.
Loan Payment Calculators can compute an estimate of your monthly loan payments and the annual salary required to manage them without too much financial difficulty. This loan calculator can be used with Federal education loans
(Direct Subsidized/Unsubsidized Loans, Perkins and PLUS) and most private student loans. Click here for the Loan Repayment Calculator.
Loan Exit Counseling
Federal regulations require that students who borrow from the federal loan programs receive loan exit counseling upon graduation or dropping below half-time enrollment status. Exit counseling provides details regarding a borrower’s rights and responsibilities for student loan repayment as well as deferment and forbearance options. Direct Loan Exit counseling should be completed online at NSLDS (National Student Loan Database).
Information regarding loan forgiveness programs and other helpful tools are also available at the Federal Student Aid website.